Senate Report Welcomed

The Senate report on equalization is good news for the Campaign for Fairness, Premier John Hamm said today.

The report of the Standing Senate Committee on National Finance, titled The Effectiveness of and Possible Improvements to the Present Equalization Policy, addressed the loss of Nova Scotia resources revenues to the federal government.

Committee chair Senator Lowell Murray said in the report's preface: "We believe this problem must be addressed within the offshore accords with the affected provinces, or through some other existing, or new programs -- not through changes to the equalization formula."

Premier Hamm noted this is identical to Nova Scotia's position.

"Our government has never advocated changing the equalization formula to exclude resource revenues," said the premier. "Rather, our government has always advocated a solution outside of the equalization formula to ensure that the commitments undertaken by the federal government are honoured."

Premier Hamm launched the Campaign for Fairness in January 2001. The campaign's goal is to ensure that Nova Scotia receives its rightful share of the revenues generated through its offshore oil and gas development.

In 1986, Nova Scotia signed the Canada-Nova Scotia Offshore Accord with the federal government. The accord guaranteed that Nova Scotia would be the principal beneficiary of its offshore oil and gas resources. Currently, Nova Scotia receives 19 cents out of every dollar generated by the offshore.

The Senate report also noted that the intent of the offshore accord had not been met.

"Our government will continue to work with the federal government to identify practical solutions outside of equalization that will allow Nova Scotians to truly benefit from our offshore," concluded the premier.

Most of the Senate report's recommendations reflect the presentation made to the committee last fall by Finance Minister Neil LeBlanc.